REAGAN'S CABINET-HOW IT STACKS UP NOW

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00148R000500980038-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: January 31, 2008
• Sequence Number: 38
• Publication Date: December 13, 1982
• Content Type: OPEN SOURCE

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eeagan's Cabinet-
NOw It SteckS UpNow
Rejecting advice from some of his
closest aides, Ronald Reagan has ve-
toed a shake-up of his cabinet at the
halfway mark in his term.
. "As far as the President is con-
cerned, no changes are contemplat-
ed, planned or foreseen," reports a
senior adviser. "He's made it very
clear. He tfiinks he has a winning
team."-
Accordingly, White House aides
largely'have given up hope of edg-
ing ="out sev;~ral:~cabinet ..officers
whom they see as weak administra-
tors or political liabilities to a Presi-
dent who hints increasingly about a
1984 re-election bid.
Still, there could be voluntary de-
partures by some department heads
over the next two years, especially
among those who have had little
voice in shaping major policies.
Below is a department-by-depazt-
ment look at where cabinet mem-
bers go from here-their strengths
and weaknesses, what they hope to
accomplish in 1983 and the obsta-
cles they are up against.
STATE: Low-Key Control
Secretary of State George Shultz,
who succeeded Alexander Haig last
summer, exerts wide influence in inter-
national affairs and economic policy.
On foreign affairs, Shultz's cautious
style and self-effacing manner have
eased the conflicts and confusion that
marked Reagan's first 18 months in of-
fice. Friction between the National Se-
curity Council, the State Department
and the Pentagon has waned. Observ-
ers note only one conspicuous short-
coming in Shultz. He has not yet
shown much flair as a strategic thinker.
The Secretary's two most important
tasks in the months ahead: Orchestrate
a constructive U.S. response to the new
Soviet leadership under Yuri Andropov
and bring about a withdrawal of for-
eign troops from Lebanon as part of a
comprehensive peace settlement be-
tween Arabs and Israelis. Also, a
planned trip by Shultz to Peking early
in the new year is seen as a move to
check the decline in Sino-American re-
lations caused by Reagan's support for
Taiwan.
The former budget director, Labor
Secretary and Treasury Secretary at-
tends many top-level economic meet-
ings and does not hesitate to advise the
President on the business outlook. But
in this realm, Shultz-at least for
now-is second in influence to Trea-
sury Secretary Donald Regan.
TREASURY: Bull Market
Despite meager results thus far from
the administration's economic-recov-
ery program, Treasury Secretary Don-
ald Regan's stock remains high in the
Oval Office.
The former Wall Street executive
heads the important Cabinet Council
on Economic Affairs and is a major fig-
ure in the White House's "legislative-
strategy group," where the administra-
tion's key economic proposals usually
are fashioned.
The President makes up his own
mind on economic policy, however,
and at times goes against his Treasury
Secretary's advice. Example: He pi-
geonholed Regan's proposal to advance
next year's scheduled tax cut from July
1 to January 1 after it became clear
that Congress would not buy the idea.
During 1983, Regan will push for de-
regulation of the banking industry and
work to improve the government's
cash Flow through the use of state-of-
the-art computer systems.
DEFENSE: Uphill Campaign
Beating back a growing challenge in
Congress to Reagan's plans for huge
increases in the defense budget is Cas-
par Weinberger's overriding mission.
The Defense Secretary is uniquely
suited to the task. His influence with
the President, whom he served as a
key subordinate in California govern-
ment, is unsurpassed by any other
member of the cabinet. His skill in lob-
bying lawmakers has been proved.
Yet Weinberger faces steep odds on
Capitol Hill. Legislators, confronted
with escalating budget defiicits and in-
creased pressure from nuclear-freeze
advocates, are balking at Reagan's re-
quest to deploy the MX missile. Many
lawmakers also aze dubious of such oth-
er big-ticket items as the B-1 strategic
bomber and the Trident submarine.
Weinberger's best efforts notwith-
standing, cuts in Pentagon spending
are likely.
INTERIOR: Political Waves
Unrelenting controversy generated
by James Watt has been a particular
source of concern to White House po-
litical experts, who believe the Interior
Secretary has unnecessarily alienated
environmentalists.
Yet Watt is in no imminent danger of
losing his job. His policies to accelerate
energy development on federal lands
BILL FlTZ-v~TRICK-tNE WHITE WUJE
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and off-shore tracts have the full back-
ing of the President. Moreover, Watt
won points with conservative Republi-
cans through political fund raising, es-
pecially in the West.
Watt will continue to push for more
state control over coal mining and seek
to open wilderness areas for mineral-
resource inventory. Also in the works:
Higher fees for hikers and campers in
national parks; increased user charges
for farmers and others who benefit
from federal water projects.
JUSTICE: Gains and Gaffes
After getting off to a slow start two
years ago, Atty. Gen. William French
Smith not only has mastered his de-
partment but has managed to sharp-
ly alter government policy on school
desegregation, affirmative action
and antitrust enforcement. Now he
is fighting for congressional approv-
al of increased spending to fight
drugs and organized crime.
But Smith, an old friend of the
President's, continues to be ham-
pered by such missteps as announc-
ing prematurely a major Florida
drug bust, thus complicating the job
of federal drug agents. A recent
fact-finding trip to Europe and Asia
by the Attorney General, his wife,
10 aides and about a dozen security
agents sparked controversy over the
cost to taxpayers.
TRANSPORTATION: Up to Speed
Secretary Drew Lewis is point
man in the administration's push to
rebuild roads and bridges through a
5-cent increase in the gasoline tax.
Not much of a fight is expected.
With unemployment at a postwar
high, lawmakers are eager to pass
legislation that would create hun-
dreds of thousands of new jobs.
Lewis also will lobby on Capitol Hill
next year for regulatory relief for
airlines, interstate carriers and the
maritime industry.
Considered one of the most politi-
cally savvy members of the Reagan
team, Lewis is known to be restless
in his present post. Some predict
that if he is not given a bigger, more
demanding job in coming months,
he will quit government.
LABOR: Struggling Back
Widespread opposition from union
leaders and poor relations with influ-
=~~tia1 members of Congress are
mong Labor Secretary Raymond
Donovan's biggest handicaps.
After twice being cleared by a
special prosecutor of alleged deal-
ings with mobsters, Donovan-a for- i
mer New Jersey contractor and Rea-
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gem pt~litical fund-rais~rr-gi~i?s f?~i?n
indication that he intends to hold on to
his post despite the misgivings of
White House political strategists.
His priorities include. implementing
the new jobs-training act passed b~
Congress, easing the burden of govern-
ment regulation on employers and
combatting fraud in pension funds.
COMMERCE: Businesslike Efficiency
The rise of protectionist sentiment in
Congress offers Malcolm Baldrige his
sternest challenge yet as Commerce
Secretary. He, is seeking to defuse the
push for new U.S. trade barriers by
negotiating with the Japanese to open
~, _
their markets to more American g
Results have been limited, slthoug'
Raldrige's successful drive to negotiate
voluntary limits on European steel ex-
ports to this country won praise from
both sides of the .Atlantic.
The former chairman of Scovill, Inc.,
has been frank in his public statements
about gloomy economic conditions-so
much so that he has embarrassed fel-
low cabinet officers. But he still stands
high with the President, with whom he
shares a love of horseback riding.
Those close to Baldrige insist he will
stay another two sears, despite hints
that he would like a more critical
post-perhaps as head of the Office of
Professional service
means a lot to me.
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leaders of minority groups of insensitiv-
ity to the problems of the poor. White
llouse aides, at the same time, complain
that he is not aggressive enough in de-
fending administration policies.
Associates report that Pierce, often
reserved in public appearances, is less
than comfortable in his job. Some ob-
servers speculate that he may decide
not to stay on for two more years. At
least for now, though, Pierce will keep
fighting for congressional approval of
low-tax urban enterprise zones and for
housing vouchers to replace some pub-
lic-housing programs.
AGRICULTURE: Innovative Program
To improve sagging farm income
without straining the federal bud-
get, Agriculture Secretary John
Block is seeking to boost grain ex-
ports to the Soviet Union and has
proposed substituting surplus grain
for cash as payment to farmers for
withholding acreage from produc-
tion. Both steps aze designed to re-
duce growing stockpiles that have
depressed prices for farmers.
ENERGY: Nine Lives
President Reagan's campaign
pledge to abolish the Department of
Energy remains on the back burner
with the nomination of Donald Ho-
del as the new Energy Secretary.
Hodel, a former under secretary
of the Interior under Watt, is recog-
nized as a skillful administrator. His
appointment to succeed James Ed-
wards is viewed by many as a sign
that the President, in the face of
stiff opposition from members of
Congress and special-interest
groups, does not intend to pursue
his goal of dismantling the depart-
ment created by Jimmy Carter.
Even so, Hodel is regarded more as
a caretaker than as an innovator.
EDUCATION: More Uncertainty
With an eye on the 1984 presiden-
tial campaign, some of Reagan's se-
nior advisers are having second
thoughts about the President's
promise to abolish the Department
of Education.
Sentiment for preservation-
strong among lawmakers and politi-
cally active educators across the
country-makes it a good bet that
the department is here to stay.
Secretary Tercel Bell's future is
uncertain, but intimates say he
plans to stay on to push for tuition
tax credits and consolidation of fed-
eral programs into block grants. D
B~ ROBERT A. K/7TLE with rnernhers of the
nmKU;ine's tti~shieKton staff
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~ \t;u~nf;c~nu~nt and Budget if Uavicl
St~~cki~uui ~?~er I>o~+s out.
HHS: Low Profile
Perhaps no cabinet officer has had
his turf encroached upon more by the
11'hite Ilouse staff than Secretar~? Rich-
ard Schweiker of the Department of
IIealth and human Services. This is be-
cause budget decisions are being made
primarih at the White House's Office
of \1anagement and Budget, and many
of the most tempting targets for savings
happen to be in HHS.
Still, in presiding over an array of
sensiti~ e cuts, Schweiker has been loy-
al to Reagan's aims. "He has done what
he was told to do hc~ttc~r than anvuue,"
savs one associate.
Schweiker will continue to stress dis-
ease prevention and promote health
education, while working to hold down
hospital costs. In 19Zti3, he will also have
to go to the mat for whatever Social
Security reform proposals the adminis-
tration decides to champion.
HUD: Frustrating Future
As the only black member of the Pres-
ident's cabinet, Samuel Pierce often has
found himself in no-win situations.
Forced to defend cutbacks in programs
of the Department of Housing and Ur-
ban Development, Pierce is accused by
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